Trade as a threshold variable for multiple regimes: A comment

This short note re-examines if trade share can serve as a threshold variable for splitting middle-income countries into two different regimes as claimed in Papageorgiou [Papageorgiou, C., 2002. "Trade as a threshold variable for multiple regimes." Economics Letters 77, 85-91.]. New evidence renders the claim that trade share is a threshold variable weaker, if not nonexistent. (c) 2006 Elsevier B.V. All rights reserved.